Syrma SGS Technology (SYRMA) investor relations material

Executive summary

• Q1 FY26 saw significant improvements in key financial and operational metrics, with EBITDA margin rising from 5.2% to over 10% and gross margin from 15% to 25% year-over-year.

• PAT rose 145% year-over-year to ₹499 million, with a PAT margin of 5.2%.

• Export revenue contributed 25% of total revenue, increasing 29% year-over-year to INR 233 crore.

• A joint venture for PCB manufacturing was announced, targeting a $5 billion Indian market with strong technology partnership and government incentives.

• High-margin verticals (automotive, industrial) expanded their revenue share, while low-margin consumer business declined.

Financial highlights

• Consolidated Q1 revenue was INR 960 crore (₹9,600 million), up 1.4% sequentially but down 18.3% year-over-year.

• Gross margin improved to 25% from 15.5% year-over-year, driven by business mix and operational efficiencies.

• Operating EBITDA grew 75% year-over-year to INR 96 crore (₹957 million), with a 10% margin.

• PBT reached INR 67.1 crore (₹671 million, 128% growth, 7% margin); PAT was INR 50 crore (₹499 million, 145% growth, 5% margin).

• Net working capital days stood at 69, with a target to reduce below 65 in coming quarters.

Outlook and guidance

• Full-year revenue growth guidance is 30–35% over the previous year, with operating EBITDA margin expected at 8.5–9%.

• Export revenue is expected to exceed INR 1,000 crore, with Western Europe and North America as key markets.

• CapEx (excluding PCB JV) is guided at INR 80–100 crore annually; PCB JV will add $30 million over the next two years.

• Capacity utilization is expected to reach 65–70% for the year, with sufficient headroom for future growth.

• Forward-looking statements highlight risks from regulatory, competitive, and macroeconomic factors.